This publication was prepared by the INTOSAI Working Group on Environmental Auditing (WGEA). The WGEA aims to encourage the use of audit mandates and audit methods in the field of environmental protection and sustainable development by Supreme Audit Institutions (SAIs). The WGEA has the mandate to ▪ help SAIs gain a better understanding of the specific environmental auditing issues, ▪ facilitate exchange of information and experiences among SAIs, and ▪ publish guidelines and other informative material. This publication may be downloaded free of charge from the INTOSAI WGEA website http://www.wgea.org. Permission is granted to copy and distribute this publication, giving appropriate credit, provided that such copies are for academic, personal or professional use and are not sold or used for commercial gain. Foreword Environmental pollution is one of the serious crises to which we are facing today. In the United Nations Environment Assembly (UNEA) held in Nairobi on 23-27 June 2014, delegates from around the world unanimously agreed to encourage governments to set standards and policies across multiple sectors to reduce air pollution emissions and manage the negative impacts of air pollution on health, the economy, and overall sustainable development. This UNEA Resolution recognized that air pollution, responsible for seven million deaths annually, according to estimates by the World Health Organization (WHO), is a top issue that requires immediate action by the international community. As reported by the Organization for Economic Cooperation and Development (OECD), the cost of the health impact of air pollution in OECD countries (including deaths and illness) was about USD 1.7 trillion in 2010. In China, the cost of the health impact of air pollution was about USD 1.4 trillion and about USD 0.5 trillion in India in same year. Similarly, in May 2015, the Sixty-eighth World Health Assembly (WHA) adopted resolution WHA68.8, in which the Director-General was requested, inter alia, to propose to the Sixty-ninth WHA a road map for an enhanced global response to the adverse health effects of air pollution. In response thereto, an early version of the draft road map was considered by the Executive Board at its 138th session. The First WHO Global Conference on Air Pollution and Health from 30 October to 1 November 2018 brought together global, national and local leaders. Participants at the conference recognized the need for a world free of air pollution and an aspirational goal of reducing the number of deaths from air pollution by two thirds by 2030. In the 2030 Sustainable Development Goals (SDGs), air quality and its impact on human health was considered as one of the top priorities under Goals 3 and 11. These two Goals envision to Make Cities and Human Settlements Inclusive, Safe, Resilient and Sustainable by reducing the adverse per capita environmental impact of cities, including paying special attention to air quality and municipal and other waste management and Ensure Healthy Lives and Promote Well Being for All Ages through substantial reduction of the number of deaths and illnesses from hazardous chemicals and air pollution and contamination, among others. The WGEA, in its Work Plan for 2017-2019, included the conduct of a research project on Environmental Health (focus on Air Pollution) and the role of SAIs in dealing with these issues and concerns. FOREWORD 3 The project aims to (a) identify and describe the issues and risks related to environmental health, with focus on Air Pollution, in which the governments worldwide are faced with that needed concrete response measures; (b) determine the government responses on issues related to air pollution and its health effects; (c) find out how international organizations can assist/support in surmounting the effects of air pollution on health; (d) ascertain the objectives in the conduct of audit; the criteria used; and the methodologies employed by SAIs in the audit of this area; (e) describe the challenges of SAIs in auditing these issues and identify the best strategies and practices adopted to assist them to face and overcome these challenges. Accordingly, the project will identify the role of governments and contributions of international organizations in responding to air pollution and its effects related to health. The project will likewise gather SAI experience in auditing issues related to air pollution, through the use of case studies, wherein the SAIs helped governments identify and implement immediate cost-effective measures to reduce, if not eliminate, the sources and effects of air pollution, through their audit recommendations. The case studies will present examples of audit works of the SAIs. The project also portrays the challenges encountered in audit by SAIs and best approaches and practices adopted to achieve their audit objectives. The work on this document was led by the SAI of Philippines. In particular, we would like to acknowledge the efforts of the authors, Wilfredo A. Agito, Ma. Corazon S. Gomez, Maribeth F. De Jesus, Jesusa R. Gauang and Evelyn V. Menciano. We also like to acknowledge the contributions made by the SAIs worldwide, especially the project sub- committee members Morocco, Czech Republic, Egypt, Iran and Pakistan. A special recognition to the INTOSAI WGEA and its Steering Committee members for their valuable help in various phases of the project. We hope you will find this research paper useful and beneficial. Prof. Dr. Moermahadi Soerja Djanegara, CA., CPA. Michael G. Aguinaldo Chairman of the Audit Board of the Republic of Chairperson of the Commission on Audit of Philippines Indonesia Project Leader Chair of INTOSAI WGEA 4 FOREWORD Quality Assurance Certificate of the Chair of INTOSAI Working Group on Environmental Auditing (WGEA) This is to certify that Research Project on Environmental Health (focus on Air Pollution) which is placed at level three of Quality Assurance as defined in the paper on “Quality Assurance on Public Goods developed outside Due Process” approved by INTOSAI Governing Board in November 2017 has been developed by following the Quality Assurance processes as detailed below: i. The project proposal was developed by the team with consultation of INTOSAI WGEA Steering Committee Members; ii. The project was discussed during the 15th INTOSAI WGEA Steering Committee Meeting at Washington D.C- USA. in 2017 and further discussed during parallel session of 18th INTOSAI WGEA Assembly Meeting in Bandung-Indonesia; iii. The project output draft was circulated among team members, steering committee members, and has gone through more than 30-day exposure (from 22 March to 10 May 2019) for comments at INTOSAI WGEA website and circulated among WGEA members. The product developed is consistent with relevant INTOSAI Principles and Standards. The structure of the product is in line with the drafting convention of non-IFPP documents. The product is valid until 30 September 2025 and if it is not reviewed and updated by 30 September 2025, it will cease to be a public good of INTOSAI developed outside the Due Process. Jakarta, July 2019 Prof. Dr. Moermahadi Soerja Djanegara, CA.CPA Chair of the Audit Board of the Republic of Indonesia Chair of INTOSAI WGEA Table of Contents Foreword 3 Table of Contents 5 List of Figures 7 List of Tables 8 Acronyms and Abbreviations 9 Executive Summary 13 Chapter 1 Introduction and Background 15 Definition of Air Pollution 15 Categories of Air Pollution 15 Household (Indoor) Air Pollution 15 Outdoor Air Pollution 16 Types and Sources of Air Pollutants 19 Primary Pollutants 19 Secondary Pollutants 22 Gaseous air pollutants 22 Particulate air pollutants 23 Shares of Air Pollutants to Air Pollution 23 Who Are Vulnerable to Air Pollution 25 Effects/Impact of Air Pollution on Health 27 Financial Risks Related to Air Pollution and Human Health 29 Chapter 2 Role of Governments in Responding to Air Pollution Issues and Its Effects Related to Health 31 Overview 31 Government interventions to reduce and combat air pollution and its health 34 impact Measuring/Monitoring instruments used by governments for air pollution 40 TABLE OF CONTENTS 5 Non-financial and financial mechanism used by governments for pollution 43 abatement Non-Financial Mechanism 43 Financial Mechanism 43 Air quality improvement assessments/evaluation of air quality improvement 45 tools Air quality improvement/assessment 45 Evaluation of air quality improvement tools 46 Chapter 3 Efforts Of International Organization On Air Pollution And Its Health Effects 48 International Assembly/Congress on Air Pollution 48 World Health Assembly (WHA) 48 WHO Global Conference on Air Pollution and Health 49 United Nations Environment Assembly (UNEA) 51 Stockholm Convention on Persistent Organic Pollutants 52 United Nations Economic Commission for Europe (UNECE) 52 ASEAN Agreement on Trans-boundary Haze Pollution 53 Responses of international organizations in helping governments reduce 54 and combat air pollution and its health effects World Health Organization 54 United Nations Environment Programme (UNEP) 56 United Nations Educational, Scientific and Cultural Organization (UNESCO) 57 Organization for Economic Cooperation and Development (OECD) 57 Assistance and provision of funding sources in support of programs and 58 projects related on impacts of air pollution on health Chapter 4 Audits Conducted on Air Pollution Issues by SAIs and Challenges Encountered in Audit and Best Approaches and Practices Adopted to Achieve 61 Audit Objectives Scope, Objectives, Criteria and Methodologies on Audits Conducted by 61 SAIs and SDGs Challenges Encountered by SAIs in Auditing Air Pollution Issues and 69 Strategies Adopted to Achieve Audit Objectives Appendix SAIs Case Studies 71 6 TABLE OF CONTENTS List of Figures Figure I. Possible Places of Indoor Pollution with Potential Pollutants Figure II. Sample Sources of Outdoor Pollution Figure III. Six Common Outdoor Pollutants Figure IV. Share of Air Pollutants to Air Pollution Figure V. World’s Air Pollution: Real-time Air Quality Index, January 2019 Figure VI. People vulnerable to air pollution Figure VII.